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Budget official: R.I. in 'severe economic distress'

4:36 PM Mon, Nov 24, 2008 |
News staff    Email

By Steve Peoples
Journal State House bureau

PROVIDENCE -- The House Finance Committee was confronted with a daunting task this afternoon during a rare off-session meeting focused on the state government's massive financial problems.

"This current year deficit is probably the biggest challenge anyone has faced in 17 years," said House Fiscal adviser Michael O'Keefe, refering to a current-year budget hole of more than $350 million, or 11 percent of state-only spending.

The problem is compounded, he said, by a lack of time. The massive shortfall "has to be made up in six months and five days," which is the end of the current fiscal year.

During the budget crisis of 1991, the Assembly approved a budget-balancing plan by Feb. 12, according to O'Keefe. House Finance Committee chairman Steven Costantino said he'd like to approve a package before that date in 2009.

But the legislature can't move forward without a formal "supplemental budget" submission from Governor Carcieri.

The governor's office said today that Carcieri would decide on a budget-balancing plan by mid-December, but would not formally submit it to the legislature until the part-time body officially returns Jan. 6.

Today's hearing, the first of four informational meetings by the Assembly's most powerful committee, attracted a standing-room-only crowd of lobbyists representing various groups sure to be affected by widespread budget cuts.

They included organized labor, municipalities, school districts, and various human service organizations such as the Urban League and Kids Count.

"We know that the only way you're going to solve a budget is with more cuts," said Lisa Guillette, executive director of the Rhode Island Foster Parents Association, adding that her organization is still recovering from budget cuts of two years ago. "We've got to figure out some other solutions to this because we've already made very, very painful cuts and blanced the cuts on the backs of people who are least able to sustain it."

Costantino said that both municipalities and human service programs should expect cuts, but he wouldn't go into specifics or comment on plans to raise revenues through new fees or taxes.

"At this point it's just too premature to know what the details are," he said.

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Comments

Bob Arino said:

At least Eye-Rack is getting 10 Billion a month. Just remember when you're eating cat food next to a oil drum fireplace that freedom isn't free!



bill said:

why is there not a public accounting of where all this money went.money belongs to the taxpayers we have a right to an explanation of where the money went.how many more programs have to be cut from the poor and how many more taxes are going to be raised.but yet rhode island voters still vote the same ones back into office.its time for a better plan dont you think



RhodyFirst said:

Governor Befuddled is so out of it it's criminal. He promised 20,000 net new jobs a year and wasn't even able to make that limited target during his first four years, even though he low-balled the number to make himself look good and RI had been creating more than 30,000 net new jobs a year under Ed DiPrete when Bill Clinton was president.

Governor Beffudled's been a disaster since he took office. Our state economy has been in a disastrous decline ever since, and all he does is spew meaningless rhetoric blaming everyone but himself for the state's woes. This is the same Gov. Befuddled who lectured us on ethics and morality for four years and he's the ONLY state official to have been cited four times by the state ethics commission for ethics violations.

Governor Befuddled, please do all Rhode Islanders a favor and simply resign. We can't afford your lack of leadership and pronounced incompetence for another two years!!!



mike4 said:

Its a shame that over a month has passed since information re: the Budget defict came to light. And now the General Assembly is just now getting around to dealing the the reality of a budget deficit, of couse after they received their cost-of living raises and trips, lets not forget those important trips.
But I guess that it is not that important that many of RI taxpayers are not going to see a raise this year, or even take a trip.
It would be a true gesture of honesty and integrety if they (General Assembly and the Senete) were honest and admit, they haven't got a clue. They might want to enlist some experts.



dan said:

Hopefully the Governor's office will provide a "workable" supplemental budget this time. He normally submits budgets that are not properly funded then dumps it on the Legislature to fix and take the heat for anything that does not work out. Great leadership.



Dave said:

Raise Taxes!



Rex said:

Bill I agree with you, part of the problem is how many people in this state get some type of compensation at taxpayer expense. There will never be an audit or a justifcation of how the funds are spent. The people of this state either do not care are getting a piece of the pie.



pdunny said:

Which will go bankrupt first? Twin River or the state of RHode Island?



John said:

Bad news. But the economy will change for the better. It always does and is just a phase. Try to remain optimistic, as hard as it is. In the meantime, you can get help. This site get help on bills. For example the government and others are giving help with mortgages to 2 million people, help with utilities, companies help consoliade debts, save on property taxes, ways to work from home, and many other. I found programs and tips here.
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Henry said:

Governor Befuddled, be damned! The ills of Rhode Island are not the Governor's fault, It's the buffoons in our legislature who battle him at every turn. They are the ones who should have been turned out at the last election, but no, the "Good Old Boy Network" was voted back in by the very people who complain about the Governor. Keep voting those dummies back in Rhode Islanders and you will get what you deserve.




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